XAU/USD outlook: Gold price started a downward move with resistance at $1,300

Gold price failed to hold gains above the $1,325 level and later started a downward move against the US Dollar. The price broke the $1,318 and $1,305 support levels to move into a bearish zone.

The price even broke the $1,300 support on FXOpen UK and settled well below the 50 hourly simple moving average. It traded as low as $1,290 and later started an upside correction. The price climbed above the $1,295 level, but there are many hurdles on the upside near $1,298 and $1,300.

There is also a crucial bearish trend line in place with resistance at $1,300 and the 50% Fib retracement level of the last decline from the $1,312 high to $1,290 swing low.

As long as the price is below $1,300, the price could continue to struggle. On the downside, the main supports are near $1,292 and $1,290.